Major G10 Crosses Little Changed

Omicron and U.S. fiscal headlines released on Monday remain front & centre for FX market participants.

• The major USD crosses are essentially unchanged on the day at typing, with a lack of meaningful headline flow apparent since the Asia open.
• A weaker than expected PBoC USD/CNY mid-point fixing provided a negligible, short-lived reaction in USD/CNH (as flagged in an earlier bullet),
• The NZD has managed to look through news that omicron has resulted in a delay to the re-opening of New Zealand’s borders, with the kiwi aided by an uptick in e-minis on the back of hope re: the future of U.S. President Biden’s BBB plan, fuelled by several source reports. Note that NZD/USD’s YtD low ($0.6702) remained intact after a test of the level on Monday.
• Canadian retail sales data headlines the broader economic docket on Tuesday. Participants also await President Biden’s Tuesday address. White House press secretary Psaki has noted that the speech is “not about locking the country down,” but it will focus on the vaccination drive.